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Green port logistics: Sailing toward a low-carbon shipping industry

With port infrastructures tapping on the latest innovations, shipping comes out on top of the green wave.
With port infrastructures tapping on the latest innovations, shipping comes out on top of the green wave.
24 July 2024 •

Recent geopolitical tensions and conflicts in major oil-producing regions have reduced crude oil availability, disrupting supply chains and driving up fuel costs. Post-pandemic economic recovery has exacerbated the situation, with surging energy demand outpacing supply and causing prices to spike. In addition, governments have imposed stricter environmental regulations and carbon taxes to encourage the shift toward sustainable energy sources.

As climate change and environmental degradation become more pressing concerns, consumers and businesses are increasingly demanding greener supply chains. Adapting to these challenges, the global maritime industry is pivoting toward green port infrastructure as a key solution.

Green ports significantly reduce emissions and enhance operational efficiency, helping to mitigate the industry's impact on the planet while meeting the growing demand for sustainable practices. They integrate eco-friendly technologies and practices such as shore power systems, emissions-reducing innovations, and renewable energy sources like wind and solar power. For this to become the new norm, collaborative efforts among port authorities, shipping companies, and stakeholders are crucial.

With shipping responsible for 11 percent of life cycle carbon emissions in transportation, the push toward greener ports plays a vital role in reducing the industry's overall carbon footprint.

Plugging into progress: the shocking truth about shore power

Originally, ports relied heavily on auxiliary engines running on fossil fuels to power ships while docked. These engines, however, emit significant amounts of pollutants, leading to demands for cleaner operations, especially in major port cities.

Shore power systems, known colloquially as cold ironing or alternative maritime power (AMP), reduce emissions from docked vessels at port. Ports worldwide, notably in Singapore and Shanghai, have significantly invested in shore power infrastructure to accommodate vessels calling at their terminals.

With shore power, vessels plug in to onshore electricity grids and do not have to use their auxiliary engines to generate power, reducing emissions and noise levels.
With shore power, vessels plug in to onshore electricity grids and do not have to use their auxiliary engines to generate power, reducing emissions and noise levels.

By interfacing ships with electrical grids, these vehicles are connected to land-based electrical grids while docked and idle. Berthed ships can turn their auxiliary engines off and transition to onshore electric power, reducing air pollution by up to 95 percent.

In this way, shore power systems significantly mitigate air pollution in port areas and enhance local air quality, contributing to the sustainability of port operations. Noise levels are also reduced, and local air quality is greatly improved.

The port of Hong Kong, the eleventh busiest container port globally, experiences severe air pollution. When Hong Kong shelved its shore power project, protestors pointed out that shore power could reduce the lives lost to air pollution, and even lead to annual savings of HK$523 million (€61 million). Still, the project was deemed too expensive to follow through with. As it is, the port city still faces unhealthy levels of air pollution.

Implementing shore power infrastructure in the port of Sydney improved the air quality in surrounding areas near the port.
Implementing shore power infrastructure in the port of Sydney improved the air quality in surrounding areas near the port.

The port of Sydney also faced backlash over air pollution caused by cruise ships and other vessels running their auxiliary engines while in port. Residents reported health issues linked to poor air quality, which pushed authorities to take action. Sydney responded by installing shore power infrastructure and enforcing stricter environmental regulations, leading to a noticeable improvement in air quality.

Harnessing solar and wind power for smooth sailing

Exploring renewable energy systems or hybrid systems that combine solar, wind, and hydroelectric power with complementary technologies can also help to increase energy resilience and minimize logistics disruptions.

By drawing on solar and wind power, ports possess greater energy independence as electricity is generated on-site, reducing reliance on external sources and ensuring a stable energy supply. This is especially crucial during periods of volatility or disruptions in traditional energy supply chains.
By drawing on solar and wind power, ports possess greater energy independence as electricity is generated on-site, reducing reliance on external sources and ensuring a stable energy supply. This is especially crucial during periods of volatility or disruptions in traditional energy supply chains.

Alternatively, microgrid solutions offer localized energy systems that operate autonomously or alongside the primary grid, enhancing resilience during outages and emergencies while promoting energy independence and sustainability.

The Qingdao port in China and Brisbane port in Australia have invested in extensive solar panel installations across their terminals, leveraging the region’s abundant sunlight. Qingdao’s bridge cranes utilize photovoltaic (PV) systems to generate up to 500,000 kilowatts of energy annually, across 2,800 square meters of PV panels. Similarly, Brisbane has an 800-kilowatt rooftop solar system that provides a shaded car park and produces 1300 megawatts of power annually.

These installations, in turn, reduce operational costs and reliance on conventional harmful energy sources such as fossil fuels, bringing them one step closer to their sustainability goals. For Brisbane, this has translated into the port meeting its net zero carbon emissions goal only three years after the commencement of its renewable energy journey, putting it six years ahead of its initial goal of 2030.

Ports experiencing favorable windy conditions also draw on wind turbines to bolster their renewable energy capacity. The Yokohama port in Japan and the Kaohsiung port in Taiwan strategically deploy wind turbines to supplement their energy needs and contribute to their sustainability objectives. These wind turbines also similarly generate electricity that can be seamlessly integrated into port operations or channeled into the grid, further reducing reliance on fossil fuels and mitigating carbon emissions.

These initiatives are paving the way for the Yokohama port to achieve carbon neutrality by 2050, aiding Japan in establishing a planned green shipping corridor with Singapore as the two countries tap into each other’s technologies to further decarbonize the industry. The hope is to develop a similar corridor between Kaohsiung and North America, which depends heavily on inter-port low-carbon facilities and clean energy resources.

Charging up port logistics

Port facilities have adopted hybrid and electric vehicles in their decarbonizing efforts. Rotterdam port in the Netherlands utilizes electric-powered vehicles for cargo handling and transportation within terminals. The use of diesel-powered equipment is reduced, so these ports have effectively mitigated their environmental footprint, retaining operational efficiency while reaping the benefits of diminished operating costs and reduced noise pollution.

Electric trucks parked in the surrounding premises of a port, to be deployed for cargo handling when necessary.
Electric trucks parked in the surrounding premises of a port to be deployed for cargo handling when necessary.

2,000 such trucks are expected within the facility by 2050. The port’s long-term goal is to enhance the infrastructure of all six of the port’s secure truck parks, to accommodate and utilize more electric vehicles.

Energizing the future of port logistics

Logistics firms leverage smart energy management systems powered by Internet of Things (IoT) and data analytics within green ports. These systems optimize energy consumption, monitor performance, and identify real-time efficiency opportunities. Smart meters, sensors, and control systems are strategically deployed, and energy usage is meticulously tracked. On top of that, settings are adjusted based on demand patterns, with renewable energy as the priority, minimizing waste and enhancing operational efficiency.

Energy storage solutions like battery storage systems complement intermittent renewable sources. On-site battery storage allows surplus solar energy to be stored and discharged during peak demand or when renewable energy is unavailable, ensuring grid stability and uninterrupted operations.

Charting a course through cost and regulatory barriers

Renewable energy transitions are about more than just cutting emissions and improving efficiency for logistics operations. They are a statement, showcasing a company's dedication to corporate social responsibility and environmental stewardship, resonating with stakeholders and consumers.

By tapping into solar and wind power, ports gain a newfound energy independence, ensuring a reliable energy supply even during disruptions. Microgrid solutions offer an extra layer of resilience, crucial during emergencies. Investing in renewables saves costs in the long run and strengthens financial sustainability. And with options like power purchase agreements (PPAs) and green bonds, overcoming adoption barriers becomes more manageable, paving the way for a smoother transition toward a greener future.

Governments in the Asia Pacific region are quick to set up renewable energy sources to assist companies in adopting clean energy. Japan's Feed-in Tariff (FIT) scheme guarantees fixed prices for renewable energy, while Singapore’s Green Port Program incentivizes vessels that use cleaner fuels or adopt green technologies, pushing for the use of renewable energy sources. These not only drive compliance with carbon emission goals, but also foster innovation and investment in renewable energy infrastructure within ports.

Emerging carbon pricing mechanisms like China's pilot carbon trading programs may push more logistics companies toward renewable energy investments. These blockchain-enabled energy trading platforms empower logistics companies to participate in local energy markets, monetize excess renewable energy, and support community-based initiatives. Regional targets, such as India's goal of 500-gigawatt renewable energy installed capacity by 2030, guide logistics companies in aligning with national priorities.

Measuring the waves from carbon footprints to carbon savings

For logistics companies to effectively address the environmental impact of their operations, they must first quantify it. This involves measuring and managing carbon emissions, energy consumption, and waste generation within green ports and maritime logistics. Logistics companies can utilize advanced data collection systems and analytics to monitor key environmental performance indicators by employing tailored metrics and methodologies.

This includes tracking greenhouse gas emissions from transportation, energy usage in facilities, and waste generated throughout the supply chain. By accurately measuring these metrics, these companies gain insights into their environmental footprint and identify improvement opportunities.

Life Cycle Assessments (LCAs), for instance, analyze environmental impacts across a product's life cycle, aiding companies in identifying hotspots, assessing sustainability initiatives, and minimizing their footprint. Logistics companies conduct LCAs to evaluate the impact of renewable energy investments, from manufacturing to decommissioning.

Environmental Certification Schemes like ISO 14001 and LEED provide standardized frameworks evaluating energy efficiency, resource conservation, and waste management. Logistics companies can undergo audits to achieve ISO 14001 certification, signifying adherence to environmental management standards.

The transformation of port infrastructure through the integration of renewable energy and shore power systems is a pivotal step toward sustainability. By quantifying environmental impact and embracing best practices, ports worldwide set new standards for sustainability and operational efficiency, paving the way for a greener maritime industry.


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